American Shared Hospital Services (NYSE American: AMS), a leading provider of stereotactic radiosurgery equipment and advanced radiation therapy cancer treatment services, today announced financial results for the first quarter ended March 31, 2026. The company reported total revenue of $7.1 million, a 15.9% increase from $6.1 million in the same period last year, driven primarily by a 30.2% surge in direct patient services revenue to $4.1 million.
Gross margin improved 36.7% to $1.3 million, or 18.2% of revenue, compared to $0.9 million, or 15.4%, in the prior year period. Adjusted EBITDA increased 18.4% to $1.1 million from $0.9 million. The operating loss narrowed to $(0.9) million from $(1.3) million, while net loss attributable to the company remained flat at $(0.6) million, or $(0.09) per diluted share.
Operational highlights include a 10.1% year-over-year increase in Gamma Knife procedures, totaling 229, and a 20.7% rise in proton beam radiation therapy (PBRT) treatments to 1,003. The company's Rhode Island centers continued to ramp up utilization, and its Puebla, Mexico facility showed strong growth driven by improved reimbursement and operational ramp-up.
Craig Tagawa, Interim Chief Executive Officer, stated, “We are encouraged by our performance in the first quarter of 2026, which reflects continued momentum in our direct patient care services segment and improved utilization across our treatment centers. Revenue growth of approximately 16% year-over-year was driven by strong contributions from our Rhode Island and Puebla radiation therapy centers, as well as growth in proton therapy volumes which is continuing into the second quarter.”
Ray Stachowiak, Executive Chairman, added, “We continue to execute on our strategy of expanding our direct patient care footprint while strengthening our clinical capabilities and partnerships. Growth across our LINAC and proton therapy platforms reflects increasing demand for advanced radiation therapy services, and we remain focused on further increasing utilization, improving reimbursement profiles, and driving sustained revenue expansion across our network.”
Scott Frech, Chief Financial Officer, noted, “Our first quarter performance highlights the strength of our operating model, as higher treatment volumes translated into improved margins and a significant reduction in operating loss. Additionally, I am pleased to report that we are continuing to see volumes trending higher into the second quarter.”
Segment performance showed direct patient care services revenue increased 30.2% to approximately $4.1 million, driven by contributions from the three Rhode Island radiation therapy centers and the Puebla facility. Leasing revenue remained consistent at $3.0 million, reflecting the impact of prior Gamma Knife agreement expirations partially offset by improved procedure volumes at upgraded sites.
Total cost of revenue increased to $5.8 million from $5.2 million, primarily due to higher operating costs at the direct patient services segment, including increased staffing, facility-related expenses, and maintenance costs. Selling and administrative expenses rose modestly to $1.9 million from $1.8 million, driven by higher audit, tax, and consulting fees.
As of March 31, 2026, the company had cash, cash equivalents, and restricted cash of $5.2 million, up from $3.7 million at year-end 2025. Current portion of long-term debt decreased to $16.8 million from $17.3 million. Shareholders’ equity (excluding non-controlling interests) stood at $23.5 million, or approximately $3.56 per share.
The company continues to engage in constructive discussions with its lender regarding a potential extension of debt obligations and remains focused on strengthening its liquidity profile. A conference call to discuss the results is scheduled for today at 12:00 pm ET. More information is available on the company's website at www.ashs.com.
